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Borrow against Wrapped Staked ETH (Lido): best wstETH loan platforms

How do I borrow against Wrapped Staked ETH (Lido)?
You can borrow against Wrapped Staked ETH (Lido) (wstETH) on 4 platforms we track. The best rates start at 2.70% APR with up to 86% LTV. Compound is the cheapest in our data; Morpho offers the highest loan-to-value.

4 platforms in our index accept Wrapped Staked ETH (Lido) (wstETH) as loan collateral, spanning DeFi protocols. Borrow rates start at 2.70% APR, and the most generous platform lends up to 86% of your wstETH's value. The table below ranks every option by borrow rate, so you can see the cheapest wstETH-backed loans at a glance.

CompoundDeFi
Borrow APR
2.7–6%
Max LTV
83%
KYC
No KYC
Custody
Self-custody
Apply
AaveDeFi
Borrow APR
4–8%
Max LTV
80%
KYC
No KYC
Custody
Self-custody
Apply
MorphoDeFi
Borrow APR
4–9%
Max LTV
86%
KYC
No KYC
Custody
Self-custody
Apply
MakerDAO (Sky)DeFi
Borrow APR
5–9%
Max LTV
80%
KYC
No KYC
Custody
Self-custody
Apply

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How borrowing against Wrapped Staked ETH (Lido) works

Lido's wstETH is liquid-staked ETH, and borrowing against it is one of the most capital-efficient moves in DeFi: your collateral keeps earning staking yield while it backs your loan. The major protocols — Aave, Compound, Morpho and MakerDAO/Sky — accept wstETH and, because it tracks ETH closely, often grant it high loan-to-value limits, sometimes in dedicated correlated-asset modes that boost capital efficiency further.

Wrapped Staked ETH (Lido) as collateral: the risks

wstETH introduces a small depeg risk relative to ETH: in stress events the wstETH/ETH exchange rate can briefly diverge, which matters because protocols price your collateral off that ratio. It also stacks Lido's staking and smart-contract risk on top of the lending protocol's own. The upside — earning yield while borrowing — is real, but treat the wstETH/ETH peg as the variable to watch alongside your liquidation level.

Choosing a wstETH loan platform

The right wstETH loan depends on what you value most. Compound offers the lowest entry rate at 2.70%, while Morpho allows the highest loan-to-value at 86% — useful if you want to extract the most liquidity per coin, though a higher LTV sits closer to liquidation.

Whichever you choose, model the position first with our loan calculator and keep a comfortable buffer below the maximum LTV. The cheapest headline rate is rarely the only thing that matters — custody model, KYC, and how the platform handles a falling market all shape the real cost of borrowing against Wrapped Staked ETH (Lido).

Top wstETH loan platforms

Borrow on CompoundBorrow on AaveBorrow on Morpho

Frequently asked questions

How many platforms let me borrow against Wrapped Staked ETH (Lido)?
We track 4 platforms that accept Wrapped Staked ETH (Lido) (wstETH) as collateral, with borrow rates from 2.70% APR and loan-to-value up to 86%.
What is the cheapest way to borrow against wstETH?
In our current data, Compound has the lowest borrow rate for wstETH at 2.70% APR. Rates change, so confirm on the platform and weigh custody and KYC alongside the headline number.
How much can I borrow against my Wrapped Staked ETH (Lido)?
It depends on the platform's maximum loan-to-value. The most generous option for wstETH in our index lends up to 86% of your collateral's value, but borrowing that close to the maximum leaves little margin before liquidation.
Is borrowing against Wrapped Staked ETH (Lido) safe?
The main risk is liquidation if wstETH falls in value while your loan is open. Borrowing conservatively, plus choosing a custody model you trust, manages most of it. wstETH introduces a small depeg risk relative to ETH: in stress events the wstETH/ETH exchange rate can briefly diverge, which matters because protocols price your collateral off that ratio.

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